Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Strategy & Execution
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged)
This case on Qwikcilver and Woohoo analyses the development of the Qwikcilver gift card processing business, its various challenges in evolving the primary B2B business model and how the firm has introduced the Woohoo platform to help with direct customer connect. It begins with the efforts of the founders in identifying a green field opportunity, how they go about bringing in the initial customer base and then the case delves into the different developments that have shaped the firm's evolution. The case helps develop an understanding of the gifting market in India, the challenges of building a sustainable business in this sector and how the firm compares with the rest of the competition worldwide. It highlights how a Software-as-a-Service (SaaS) business model could increase resilience to competition by bringing in a new side in the form of direct connect with customers who buy or redeem gift cards, thus transforming from a pipeline business to a two-sided platform business model. The case is used to teach the basics of pipeline and multi-sided platform business models, the different actors in the platform business and the concept of network effects. It should help the students appreciate the differences between the pipeline and platform business models, and how a platform business model can bring in additional competitive differentiation as compared to a pure SaaS approach by increasing switching and multi-homing costs for the customers.
Authors :: R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride
Swot Analysis of "Qwikcilver and Woohoo Developing a Complementary Platform (Abridged)" written by R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Qwikcilver Woohoo facing as an external strategic factors. Some of the topics covered in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study are - Strategic Management Strategies, Economics, International business, IT and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) casestudy better are - – increasing household debt because of falling income levels, wage bills are increasing, talent flight as more people leaving formal jobs, customer relationship management is fast transforming because of increasing concerns over data privacy, banking and financial system is disrupted by Bitcoin and other crypto currencies, cloud computing is disrupting traditional business models, central banks are concerned over increasing inflation,
competitive advantages are harder to sustain because of technology dispersion, challanges to central banks by blockchain based private currencies, etc
Introduction to SWOT Analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged)
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Qwikcilver Woohoo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Qwikcilver Woohoo operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) can be done for the following purposes –
1. Strategic planning using facts provided in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study
2. Improving business portfolio management of Qwikcilver Woohoo
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Qwikcilver Woohoo
Strengths Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Qwikcilver Woohoo in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study are -
Ability to recruit top talent
– Qwikcilver Woohoo is one of the leading recruiters in the industry. Managers in the Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Sustainable margins compare to other players in Strategy & Execution industry
– Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) firm has clearly differentiated products in the market place. This has enabled Qwikcilver Woohoo to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Qwikcilver Woohoo to invest into research and development (R&D) and innovation.
Training and development
– Qwikcilver Woohoo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Ability to lead change in Strategy & Execution field
– Qwikcilver Woohoo is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Qwikcilver Woohoo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Cross disciplinary teams
– Horizontal connected teams at the Qwikcilver Woohoo are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
Successful track record of launching new products
– Qwikcilver Woohoo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Qwikcilver Woohoo has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
Superior customer experience
– The customer experience strategy of Qwikcilver Woohoo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Strong track record of project management
– Qwikcilver Woohoo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Effective Research and Development (R&D)
– Qwikcilver Woohoo has innovation driven culture where significant part of the revenues are spent on the research and development activities. This has resulted in, as mentioned in case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) - staying ahead in the industry in terms of – new product launches, superior customer experience, highly competitive pricing strategies, and great returns to the shareholders.
Organizational Resilience of Qwikcilver Woohoo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Qwikcilver Woohoo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Learning organization
- Qwikcilver Woohoo is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Qwikcilver Woohoo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
High brand equity
– Qwikcilver Woohoo has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Qwikcilver Woohoo to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Weaknesses Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are -
No frontier risks strategy
– After analyzing the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Need for greater diversity
– Qwikcilver Woohoo has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Qwikcilver Woohoo has relatively successful track record of launching new products.
High dependence on existing supply chain
– The disruption in the global supply chains because of the Covid-19 pandemic and blockage of the Suez Canal illustrated the fragile nature of Qwikcilver Woohoo supply chain. Even after few cautionary changes mentioned in the HBR case study - Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), it is still heavily dependent upon the existing supply chain. The existing supply chain though brings in cost efficiencies but it has left Qwikcilver Woohoo vulnerable to further global disruptions in South East Asia.
Aligning sales with marketing
– It come across in the case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) can leverage the sales team experience to cultivate customer relationships as Qwikcilver Woohoo is planning to shift buying processes online.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), in the dynamic environment Qwikcilver Woohoo has struggled to respond to the nimble upstart competition. Qwikcilver Woohoo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
High operating costs
– Compare to the competitors, firm in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Qwikcilver Woohoo 's lucrative customers.
Interest costs
– Compare to the competition, Qwikcilver Woohoo has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Qwikcilver Woohoo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Increasing silos among functional specialists
– The organizational structure of Qwikcilver Woohoo is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Qwikcilver Woohoo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Qwikcilver Woohoo to focus more on services rather than just following the product oriented approach.
High bargaining power of channel partners
– Because of the regulatory requirements, R. Srinivasan, Sandeep Lakshmipathy, Padmavathi Koride suggests that, Qwikcilver Woohoo is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
Opportunities Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are -
Loyalty marketing
– Qwikcilver Woohoo has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Qwikcilver Woohoo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Qwikcilver Woohoo can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Qwikcilver Woohoo is facing challenges because of the dominance of functional experts in the organization. Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Buying journey improvements
– Qwikcilver Woohoo can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Qwikcilver Woohoo to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Qwikcilver Woohoo to hire the very best people irrespective of their geographical location.
Leveraging digital technologies
– Qwikcilver Woohoo can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Qwikcilver Woohoo can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Qwikcilver Woohoo has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Qwikcilver Woohoo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Developing new processes and practices
– Qwikcilver Woohoo can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Low interest rates
– Even though inflation is raising its head in most developed economies, Qwikcilver Woohoo can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Qwikcilver Woohoo can explore opportunities that can attract volunteers and are consistent with its mission and vision.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Qwikcilver Woohoo can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Qwikcilver Woohoo can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Threats Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Qwikcilver Woohoo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Qwikcilver Woohoo business can come under increasing regulations regarding data privacy, data security, etc.
Stagnating economy with rate increase
– Qwikcilver Woohoo can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Consumer confidence and its impact on Qwikcilver Woohoo demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Qwikcilver Woohoo high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Qwikcilver Woohoo needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Technology acceleration in Forth Industrial Revolution
– Qwikcilver Woohoo has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Qwikcilver Woohoo needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged), Qwikcilver Woohoo may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Strategy & Execution .
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Qwikcilver Woohoo in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Environmental challenges
– Qwikcilver Woohoo needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Qwikcilver Woohoo can take advantage of this fund but it will also bring new competitors in the Strategy & Execution industry.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Qwikcilver Woohoo will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Qwikcilver Woohoo in the Strategy & Execution sector and impact the bottomline of the organization.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Weighted SWOT Analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Qwikcilver and Woohoo Developing a Complementary Platform (Abridged) is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Qwikcilver Woohoo needs to make to build a sustainable competitive advantage.